RPRX

NEW YORK, Sept. 04, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced an update on Novartis’ Phase 3 results from the HORIZON outcomes trial for pelacarsen, an antisense oligonucleotide studied in patients with atherosclerotic cardiovascular (CV) disease and elevated lipoprotein(a), or Lp(a). The trial did not meet its primary endpoint of reducing the risk of cardiovascular events, a composite of cardiovascular death, non-fatal myocardial infarction, non-fatal stroke, and urgent coronary revascularization requiring hospitalization in the overall study population, compared to placebo. Novartis intends to present the Lp(a) HORIZON trial data at an upcoming medical congress. Royalty Pharma’s $500 million funding agreement with Ionis was structured in a protective manner, by purchasing stable and predictable royalties in Spinraza with upside potential from the pelacarsen royalty. As a result, Royalty Pharma expects to recoup its total investment and earn a modest positive return despite the pelacarsen failure. Royalty Pharma reiterates its 2030 Portfolio Receipts target of $4.7 billion or more. As part of its January 2023 funding agreement with Ionis, $150 million of value was ascribed to royalties acquired on pelacarsen and $350 million of value was ascribed to royalties acquired on Spinraza. Under the terms of the agreement, Royalty Pharma acquired 25% of Ionis’ Spinraza royalty payments through 2027, increasing to 45% of royalty payments in 2028, on up to $1.5 billion in annual sales. Based on the HORIZON results, Royalty Pharma does not anticipate making any milestone payments to Ionis and Royalty Pharma’s royalty interest in Spinraza will revert to Ionis after royalty payments reach $550 million, representing a 1.1x return on the total amount funded. About Royalty Pharma plc Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, Servier’s Voranigo, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, and 17 development-stage product candidates. For more information, visit www.royaltypharma.com. Royalty Pharma plc Forward-Looking Statements The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law. Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source. For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov. Royalty Pharma Investor Relations and Communications +1 (212) [email protected]

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8 a.m. ET Chief Executive Officer and Chairman of the Board - Pablo Legorreta Executive Vice President, Head of Research and Investments - Marshall Urist Chairman, Partnering and Investments - Christopher Hite Executive Vice President, Chief Financial Officer - Terrance Coyne Senior Vice President Head of Investor Relations and Communications - George Grofik Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Royalty Pharma's Second Quarter 2026 Earnings Conference Call. I would like now to turn the conference over to George Grofik, Senior Vice President Head of Investor Relations and Communications. Please go ahead, sir. George Grofik: Good morning and good afternoon to everyone on the call. Thank you for joining us to review Royalty Pharma's second quarter results. You can find the press release with our earnings results and slides of this call on the Investors page of our website at royaltypharma.com. On Slide 2, I'd like to remind you that information presented in this call contains forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from these statements. We refer you to our most recent 10-K on file with the SEC for a description of these risks. All forward-looking statements are based on information currently available to Royalty Pharma, and we assume no obligation to update any such forward-looking statements. Non-GAAP liquidity measures will be used to help you understand our financial results and the reconciliation of these measures to our GAAP financials is provided in the earnings press release available on our website. And with that, please advance to Slide 3. Our speakers on the call today are Pablo Legorreta, Chief Executive Officer and Chairman of the Board; Marshall Urist, EVP, Head of Research and Investments; Chris Hite, Chairman, Partnering and Investments; and Terry Coyne, EVP, Chief Financial Officer. Pablo will discuss the key highlights, after which Marshall will provide a portfolio update. Chris will then discuss our development stage pipeline, and Terry will review the financials. Following concluding remarks from Pablo, we will hold the Q&A session. And with that, I'd like to turn the call over to Pablo. Pablo Legorreta: Thank you, George, and welcome, everyone. I am pleased to report another quarter of strong financial performance and disciplined execution. Our 25th consecutive quarter as a public company with strong predictable double-digit growth and we're achieving this as we continue to deliver on our goal of being the premier capital allocator in life sciences, driving consistent compounding growth. Slide 5 summarizes our strong business momentum in the second quarter. Starting with the financials. We delivered 6% growth in portfolio receipts, our top line, and 14% growth in total receipts, which are our recurring cash flows. Our top line performance was ahead of our guidance for the quarter and reflects the tremendous momentum of our diversified portfolio. We also maintained attractive returns in our business with return on invested capital of 14.2% and return on invested equity of 20.1%. By consistently delivering strong growth and superior returns, we believe we have a clear path to drive continued shareholder value creation. Turning to capital allocation. We have deployed $1.1 billion of capital on royalty acquisitions so far this year, with an announced value of $1.7 billion. Most importantly, we acquired a royalty on AstraZeneca's cliramitug, a potential blockbuster therapy for transthyretin amyloid cardiomyopathy. As we look ahead, our deal pipeline remains robust. Under our value-driven capital allocation framework, we also returned around $370 million to shareholders in dividends and share repurchases in the first half of the year. Moving to our portfolio. We continue to see a number of positive updates. Our partner Revolution Medicines completed its rolling submission for daraxonrasib in pancreatic cancer with accelerated review also underway in Europe. We were also delighted to see key regulatory approvals for Gilead's Trodelvy, GSK's Jideytro and Amgen's Imdelltra. We look forward to these therapies contributing to our top line in the years ahead. Looking ahead, we're increasing our 2026 full year guidance for the second consecutive quarter based on the strong business momentum I just highlighted. Slide 6 is one that I return to each quarter as it demonstrates our consistent double-digit growth on average since our IPO. We have delivered this impressive record year in and year out, regardless of the market backdrop. This reflects the quality of our asset selection and our unique business model. Slide 7, my final slide, underscores the quality of our diligence process and our deep understanding of the life sciences ecosystem. In short, we've been ahead of the curve in identifying some of the most exciting innovators. Nuvalent and MLX are just the latest examples of companies whose therapies we acquired royalties on that were subsequently acquired by large pharma companies. This, of course, validated our internal views of their programs and will also likely increase the value of our royalties as large pharma brings significant clinical resources and commercial scale. With that, I will hand it over to Marshall. Marshall Urist: Thanks, Pablo. I want to focus today on our recent royalty deal for cliramitug, which is our second investment in TTR amyloidosis. Beginning on Slide 9, we recently acquired a portion of Neurimmune's royalty interest in AstraZeneca's cliramitug for up to $425 million. The transaction was structured to include $125 million upfront payment to Neurimmune and an additional $125 million payment in the first quarter of 2027 and up to $175 million payable on key clinical and regulatory milestones. In return, Royalty Pharma will receive a royalty of 3.75% on worldwide net sales. Cliramitug is a highly novel therapy for TTR amyloidosis with cardiomyopathy or ATTR-CM. ATTR-CM is an age-associated progressive disease in which misfolded TTR proteins accumulate in the heart, severely impacting heart function and ultimately survival. There are several approved therapies for this indication, including Amvuttra, our first investment in this indication. The approved therapies slow disease progression by preventing ATTR accumulation, but they do not impact the amyloid deposits that have already accumulated in the heart. As a first-in-class TTR fibril depleting antibody, cliramitug is designed to remove amyloid and potentially reverse the course of the disease, a clearly differentiated role for cliramitug with significant benefit for patients. The early clinical data for cliramitug are impressive, Phase I demonstrated strong amyloid clearance via biomarkers that correlate with improved cardiovascular outcomes. A Phase III outcomes trial is fully enrolled around 1,200 patients and results are expected in 2028. We see clear blockbuster potential for cliramitug in an expanding market, which was more than $7 billion last year. There are over 0.5 million patients worldwide with ATTR-CM, including around 200,000 in the U.S., and of these, around 80% of patients are untreated, underscoring the scale of the unmet need and the scope for market growth. AstraZeneca has provided peak annual sales for cliramitug of between $3 billion to $5 billion. Based on this, we would expect to generate an internal rate of return in the teens consistent with our development stage target range and peak annual royalties of approximately $110 million to $190 million based on AstraZeneca's peak sales expectations. Moving to Slide 10. This latest transaction is a compelling example of how Royalty Pharma builds significant therapeutic expertise over many years, allowing us to invest in the best potentially transformative medicines often across multiple products in the same class. In the case of ATTR, we've been closely following this therapeutic category over the past decade and have evaluated many of the therapies that are now approved. Our first investment was Amvuttra in 2025, which has had a strong launch in cardiomyopathy. With the addition of cliramitug to our portfolio, we now have 2 differentiated approaches to this serious rare disease. As you have seen us do this in many other indications such as prostate cancer, spinal muscular atrophy, immunology and multiple sclerosis. This ability to build a portfolio with multiple therapies in a category is unique to Royalty Pharma. When combined with our proven deep diligence, we are well positioned to invest in the most practice-changing and innovative therapeutic categories in the industry for years to come. With that, let me hand over to Chris. Christopher Hite: Thanks, Marshall. My section of today's presentation, I want to highlight the significant expansion of our development stage pipeline, together with important upcoming events across the portfolio. You can see on Slide 12 that we have achieved strong, consistent growth in our development stage pipeline since our IPO in June 2020. At that time, we had 3 potential therapies in the pipeline. Today, we have 19, a more than sixfold increase. More importantly, the peak royalty potential of our pipeline has increased by more than 30-fold over the period with peak potential royalties from our late-stage pipeline now totaling approximately $2 billion. We have also demonstrated an excellent success rate with around 90% of our development-stage investments ultimately achieving regulatory approval, which provides us confidence that these products will be an important driver of growth into 2030 and beyond. The track record of success is underscored by Slide 13, which shows that in addition to daraxonrasib, our portfolio has delivered a number of successful clinical readouts and regulatory events so far in 2026. These include positive clinical trial results for Cytokinetics' Myqorzo, Zenas' obexelimab and Biogen's litifilimab. FDA approvals of GSK's Jideytro, Denali's Avlayah and Gilead's Trodelvy as well as a number of FDA regulatory submissions. Expanding on this theme, Slide 14 shows there is much more to come from our development stage pipeline with several major pivotal trial readouts expected through 2027. In 2026, we expect to see the results of the outcomes trial for Novartis' pelacarsen. We continue to believe that the Lp(a) class could be the next major class of cardiovascular disease drugs, and we're strongly positioned to leverage this with the 2 lead pipeline products in pelacarsen and Amgen's olpasiran. We'll also see Phase III data for Biogen's litifilimab in systemic lupus. In 2027, we expect Phase III results from daraxonrasib in lung cancer and litifilimab in cutaneous lupus. We also expect pivotal data from Sanofi's frexalimab in MS and from J&J's seltorexant in major depressive disorder. Each of these potentially transformative therapies would add significant royalties to our top line. Taking a step back, when looking at these opportunities that we are currently evaluating, we are pleased to see a balanced opportunity set that includes both attractive approved products as well as exciting development stage opportunities across a range of potential partners. To finish, I want to provide context on the composition of our portfolio, which is broadly unchanged and remains well balanced. Slide 15 illustrates that we currently have around $22 billion of total invested capital at work with around 84% of either products, which were approved when we invested or were development-stage assets which have gone on to receive approval. Additionally, while 12% of our current invested capital work is in development-stage therapies, roughly 1/3 of that capital at work has been invested in development stage programs that have already had positive pivotal results. This means that despite the expansion of our pipeline, our overall capital work for development-stage therapies is relatively small. Furthermore, we have a great track record when investing in development-stage therapies, which reflects the quality of our diligence and asset selection. With that, I'd like to hand it over to Terry. Terrance Coyne: Thanks, Chris. Let's move to Slide 17. This slide shows how our efficient business model generates substantial cash flow to be reinvested. Royalty receipts grew by 14% in the second quarter, reflecting the strength of our diversified portfolio. Milestones and other contractual receipts, which are more variable declined substantially reflecting a onetime payment in the prior year period. As a result, portfolio receipts, our top line grew 6% in the quarter to $773 million, slightly ahead of our expectations. As we move down the column, operating and professional costs equated to 4.8% of portfolio receipts in the second quarter. This line continues to demonstrate the benefit of the cash savings we are delivering from the internalization transaction, which we completed in May of 2025. Net interest paid was de minimis in the quarter. This reflects the semiannual timing of our interest payment schedule with payments primarily in the first and third quarters, together with the interest we received from the cash on our balance sheet. Moving further down the column, we have consistently stated that when we think of the cash generated by the business to then be redeployed into value-enhancing royalties, we look to portfolio cash flow, which is adjusted EBITDA less net interest paid. This amounted to $736 million for the quarter. Our margin of around 95% again demonstrate the high underlying level of cash conversion and efficiency in the business. Capital deployment in the quarter of $349 million mainly reflected royalty funding for daraxonrasib and R&D funding for J&J's 4804 and litifilimab. Lastly, our weighted average share count declined by approximately 5 million shares or 1% in the quarter versus the prior year period, reflecting the impact of our share buyback program. Slide 18 provides more detail on the evolution of our top line in the second quarter. Royalty receipts, which we consider our recurring cash inflows grew by 14%. Key drivers were the strong performances of Tremfya, Voranigo, Imdelltra and Evrysdi. Importantly, as we saw in the first quarter, we were able to absorb significant headwinds from Promacta and Imbruvica and still delivered double-digit growth in royalty receipts. Moving to portfolio receipts. These grew by 6% reflecting lower milestones and other contractual receipts given a onetime payment in the prior year period, as I already noted. Slide 19 updates our portfolio return metrics for the quarter. Return on invested capital was 14.2% for the last 12 months ending in the second quarter of 2026, and return on invested equity, which shows the impact of conservative leverage on our equity returns was 20.1% for the last 12 months. The remarkable stability of these metrics demonstrate that we are continuing to invest at attractive returns that will drive long-term value for our shareholders. Slide 20 shows that we continue to maintain the financial flexibility to execute our strategy and return capital to shareholders. At the end of June 2026, we had cash and equivalents of $812 million. In terms of borrowings, we had investment grade debt outstanding of $9.2 billion with a weighted average duration of around 12 years. Our leverage now stands at 2.8x total debt to adjusted EBITDA, or 2.6x on a net basis. We also have access to our $1.8 billion revolver, which was undrawn at the end of the second quarter. Following S&P's rating upgrade in June, I am delighted to say that Royalty Pharma is now BBB rated across all major credit rating agencies. This important milestone reflects the tremendous progress we have made as a company since our IPO, including our consistent strong top line growth, improved diversification and growing cash flows. For financial capacity, we have access to over $4 billion of financial flexibility through cash on our balance sheet, the cash our business generates and access to the debt markets. Turning to our capital allocation framework. We deployed $877 million of capital on attractive royalty deals in the first half of 2026. At the same time, we returned approximately $367 million to our shareholders, including share repurchases of around $100 million. In total, we have returned about 25% of our portfolio cash flow this year to shareholders. On Slide 21, we are again raising our full year 2026 financial guidance. We now expect portfolio receipts to be in the range of $3.4 billion to $3.5 billion up from $3.325 billion to $3.45 billion previously. This assumes growth in royalty receipts of around 7% to 10% compared with 4% to 8% previously which reflects the strong underlying momentum of our diversified portfolio. This guidance takes into account the loss of exclusivity for Promacta as well as the launch of biosimilar Tysabri in the United States and the potential impact of IRA. It also reflects an expected decrease in milestones and other contractual receipts from $128 million in 2025 to approximately $60 million in 2026. Importantly and consistent with our standard practice, this guidance is based on our portfolio as of today and does not take into account the benefit of any future royalty acquisitions. Turning to expenses. Payments for operating and professional costs are still expected to be in the range of 5.5% to 6.5% of portfolio receipts in 2026, reflecting cost savings from the internalization of the manager. We continue to expect interest paid to be around $350 million to $360 million in 2026. Based on our semiannual payment cycle, we anticipate interest paid to be around $175 million in the third quarter, with a de minimis amount payable in Q4. This guidance reflects repayment of the $380 million term loan in July but does not take into account interest received on our cash balance, which was $11 million in the first half. To close, we've had a great first half. We have again raised our guidance, and we expect to continue to deliver another full year of strong financial performance in 2026. With that, I would like to hand the call back to Pablo. Pablo Legorreta: Thanks, Terry. To conclude, I am delighted with our continued execution against our strategy in the first half of 2026. We have again delivered compelling growth and returns. We further diversified our portfolio of attractive biopharma royalties, and we have continued to strengthen our leadership team and capabilities. On that note, I want to close on Slide 23 with a reminder of why we believe we're well positioned to drive continued strong value creation. First, we're the clear leader in the rapidly expanding biopharma royalty market with powerful fundamental tailwinds, reflecting the huge demand for funding life sciences innovation. Second, we have a best-in-class platform for investing in the most transformative and innovative products marketed by premier biopharma companies. By expanding our global platform and capabilities, we expect to remain the undisputed leader in our industry. We further strengthened our platform with the addition of Greg Raskin to lead our academic royalty effort. Greg is uniquely qualified to lead work with academic partners, having led the technology transfer group at Memorial Sloan Kettering for 12 years. I continue to be amazed by the level of talent we're able to attract to Royalty Pharma. Third, we expect to deliver strong, low volatility top line and bottom line growth through 2030 and beyond. Lastly, we have an incredible track record of delivering consistent and attractive returns, including an IRR and return on invested capital in the mid-teens and return on invested equity in a 20%-plus range. With that, we will be happy to take your questions. George Grofik: Thanks, Pablo. And we will now open up the call to questions. Operator, please take the first question. Operator: [Operator Instructions] The first question comes from Geoff Meacham with Citi. Geoffrey Meacham: I got a couple for you, Terry. So we've seen a big step-up in pharma to biotech M&A and maybe there's some pharma to pharma M&A to come. The question is, what is the flexibility to tilt your deal structure with increasing weight on equity? Is there any preference by the companies. And the second question is, does your credit rating, which you cited is improving or the direction of rates downward, does that bias you to put more money to work each quarter? It seems like you could be more opportunistic here? Terrance Coyne: Sure, Geoff. So Yes. I think -- look, we highlighted on in my section that we have a lot of financial flexibility. And so to the extent that some of the M&A across the sector creates opportunities, which it certainly could. We feel like we are in a really great position to sort of partner with these companies in any way that they need and sort of add great royalties for Royalty Pharma. So yes, we'll see how that plays out over time. As far as rates, I think that the way that we view rates is we truly are agnostic to the rate environment. Rates over a couple of years were rising. We deployed a lot of capital, generated great returns in excess of our cost of capital. To the extent that rates start going down, we still feel like we can deploy capital and generate great returns. So we really do feel like we're agnostic, and we'll continue to access the debt markets from time to time when we need it with a very strong focus on maintaining that investment grade rating. And we're really happy that we're now BBB rated across all 3 agencies. Operator: And the next question will come from Terence Flynn with Morgan Stanley. Terence Flynn: This one is probably for Marshall. The recent CARDIO-TTRansform data created some questions in the TTR market recognize you guys have a multidrug portfolio approach here. But just high-level thoughts on implications for Amvuttra as you think about the forward outlook here. And then again, maybe for Chris, would just be curious, any update on kind of the synthetic royalty opportunity in terms of those -- the level of discussions or openness for boards to go down that path? I know you guys have talked about the longer-term opportunity, but just curious to get kind of a mark-to-market. Marshall Urist: Yes. Thanks, Terence. So on your first question on the implications of CARDIO-TTRansform, at a high level, we're really happy now with the 2 investments we have in TTR amyloidosis. And really, I think that's still a very interesting market, and we added something highly novel and potentially transformative in cliramitug, as I discussed. Specifically to your question on CARDIO-TTRansform, we're kind of uniquely positioned here for -- with the royalty in Amvuttra in the sense that we think there still is a lot of physician interest and potential in that product certainly I'm excited to see what Alnylam does. But it is unique in the sense that it is positioned in some ways to drive at least some benefit from the unfortunate outcome of CARDIO-TTRansform, which we certainly are never sort of welcome seeing trials fail for patients. But specifically with Amvuttra, certainly does take away a near-term competitor. And because our royalty is specific to Amvuttra and not Alnylam's follow-on, if there is any delay or other changes in the expectations for the follow-on product vutrisiran, that would also uniquely accrue to the benefit of Amvuttra. So I think we're really excited about where we stand, and we'll certainly, as we talked about today, continue to look for opportunities like cliramitug to build our innovative portfolio. Christopher Hite: And then, Terence, on the question on synthetics, thanks for that question. We are still very excited about the synthetic royalty opportunity. Last year, we announced synthetics for just over $2 billion, including the RevMed deal, which was really one of the largest synthetics ever. So that was a great deal. The growth rate in the synthetic marketplace is, I think, around 40% since 2015. Last year was the biggest year ever, just under $5 billion for the product itself. And the synthetic royalty opportunity only really represents about 5% of the capital raised by biopharma funding over the last 5 years, so not even really penetrated into that marketplace of capital formation. And given all the clear advantages of synthetics, nondilutive, lower cost of capital, program-specific funding, independent valuation -- validation, excuse me, there's a lot of advantages to it. And as our survey of all the biotech CFOs and CEOs really showed, it's really taking hold, and we're super excited about the opportunity to see it still as a big growth driver for our business. Operator: And the next question will come from Chris Schott with JPM. Christopher Schott: I just wonder like -- I think on Slide 15, you highlighted invested capital spend has been split kind of 2/3 approved 1/3 development stage over time. I guess as Royalty has grown, you've built out a broader team, you have even more ability to diligence assets. Is there any interest in leaning more into the development stage side of the business where returns could be higher or is this kind of 2/3, 1/3 mix, the right balance, I guess, if we think about risk versus return? And then maybe just a second question. I know you've been building out more of a presence in China. Just any updates in terms of initial learnings as you've kind of targeted that market? What type of opportunities you see for Royalty? And does that maybe skew towards larger deals or some of these JV assets or more towards some of the smaller earlier-stage businesses there? Pablo Legorreta: Sure. Thanks for the question. So regarding the split between unapproved and approved, I think that ratio of 65%, 35% has been sort of consistent over the last 5, 10 years. And we -- the way we look at this is not looking at independent years, but looking at what's going on over a sort of rolling 2-, 3-year period, and we think it's going to be maintained at a relatively similar level. Now when you look at our invested capital, the $22 billion or so that we have of invested capital. The amount invested in unapproved, as you can see, is relatively low. It's about 12%. That number could trend up to mid- to high teens. And it would still be a portfolio that has relatively low risk. So we -- this figure could increase over time. And we would be very, very comfortable with that kind of risk on the overall portfolio in unapproved investments. Regarding China, it's sort of early days for us in terms of capital deployed. We've been paying attention to that market for several years now. And as you know, we hired a really top player in the market. And we have started to get much more active there participating in many conferences that are being organized in China with teams present. I'm personally going to be going to China to meet with biotech, biopharma CEOs and really make sure that our model is understood by many and build the market. It takes time but we're totally committed to building that market because we believe it's actually pretty attractive and large. So I think you should just -- we are going to be patient and people should be patient about how this develops. But we think it can be a really large opportunity for us in the long run. Operator: And the next question will come from Michael Nedelcovych with TD Cowen. Michael Nedelcovych: I have 2. My first relates to operating costs. Apologies if I missed it, but what was the reason for relatively low operating costs in Q2. And given that guidance was reiterated for this line, what will be the reason for an apparent increase in the second half? It's my first question. My second question is something of a bigger picture question for Pablo. Pablo, in one of our recent meetings, when you received a question about competition, you suggested that if given the opportunity today, even you would not be able to build a new competitor that resembled Royalty Pharma. So could you remind us of your reasons for that view? Why is it that investors should not be concerned about the emergence of a competitor that has the same form, function and scale as Royalty Pharma? Pablo Legorreta: Yes, maybe I'll take that question first and then turn it over to Terry to address the other question about the expenses. My point is that when you look at what Royalty Pharma is today, we have -- there's a lot of barriers to enter, right? So obviously, scale is important. And you saw -- we just talked about the scale of our sort of capital at work $22 billion. That's the amount of capital that has been invested in those royalties. The portfolio is worth a lot more than the $22 billion. That's cost. But -- so scale is one. Cost of capital is another one. the team that we have is superb. And we just added another really great individual to our team that's going to head our academic initiatives. And it's a team that -- we have this incredible culture at Royalty Pharma that gets stronger and stronger. But the comment and the point you made about how difficult it is to replicate Royalty pharma is more or less the following. And what I say is that if people said to me, can you replicate Royalty Pharma today, if you -- someone gave you $20 billion. My answer is absolutely not. It would be impossible for me to replicate Royalty Pharma the way it is today. And it's not only because it takes time to build the team and all of the other things, but there's just aspect that is really interesting. When you look at the portfolio that Royalty Pharma has today. It's a portfolio that produces $3.2 billion last year of recurring revenue, predictable recurring revenue from a very well-diversified portfolio of products and its top products marketed by top companies. It took us over a decade to assemble that portfolio. And as examples, for example, we have a Royalty in what is becoming one of the top drugs that J&J markets Tremfya. It's a large royalty or for that matter, Trelegy or cystic fibrosis. And when you look at those assets, we made those investments 5 to 10, even 15 years ago, and they're producing cash flow today. And there's only one Tremfya royalty, and we own it. And there's one Trelegy royalty, and we own it. There's one -- there will be one daraxonrasib royalty, the investment we made last year in this pancreatic cancer drug, and we own it. So it's impossible. They're sort of one-of-a-kind assets. And it's -- the portfolio is sort of irreproducible, you cannot find another Tremfya royalty. You cannot find another dara royalty. And what I would also say is that when you look at our pipeline today, that has this incredible group of products that have -- could be blockbusters, many of them generating billions of dollars of revenue for us in sort of a 5-year time frame, 5- to 10-year time frame. It took us 5 years, 6 years, 7 years to assemble that portfolio of the pipeline. And again, they're unique. It's hard to see how there's going to be other royalties like that. And those are the assets that are going to be producing revenue and driving the growth in the next decade or so. And again, so I think that is what is so difficult to replicate. It would be impossible to do it spontaneously even if you had $20 billion, $30 billion of capital, it's the work of decades. So that's my answer to your question. And I hope you appreciate the huge moat and barrier to entry that, that provides us. Terrance Coyne: And then, Mike, on operating costs, we are very happy to see that we are realizing the synergies of the internalization transaction. But specifically as it relates to first half versus second half, I think there's just some seasonality to it. And since this is completely cash-based, the second half is going to tend to be a little bit higher than the first half. So that's what's going on there. Operator: And the next question comes from Ash Verma with UBS. Ashwani Verma: Congrats on the quarter. Maybe just first one, just going back to Slide 15, the invested capital at work. Can you remind us what type of IRR are you able to drive in the development stage assets versus the approved? I know you've given these numbers before just where you are at the latest. And then secondly, on the Lp(a) readout for pelacarsen, just latest thoughts if you can provide on what level of MACE risk reduction would be clinically meaningful. It seems like a lot of debate on this. And then if your answer changes in the high baseline Lp(a) subgroup, I would love to know that. Pablo Legorreta: Marshall, why don't you take the 2 questions? Marshall Urist: Sure. Thanks, Ash. So your first question on our return expectations. So just to level set for everyone. So what we've communicated is that for approved products, or on-market products, our unlevered IRR expectations are in the high single to low double-digit range. And we've indicated we're really more typically, very typically investing these days at the higher end of that range. For things that are unapproved, our IRR expectations are above that. So in the teens, and that can range depending on the specifics of the product at this stage, the risk profile, the counterparty, all of those things. But as we talked about at our Investor Day, I think it's important to remember that those are unlevered IRR expectations. And so to reference back to what Pablo said, something very unique about Royalty Pharma, because of our capital structure, our ability to use leverage in our capital structure, the levered returns that we see, which are the returns that our shareholders actually enjoy are significantly higher than that. So thanks for that question, and we remain very comfortable with those ranges for our new investments our new investments today. Your question on pelacarsen. Yes, there has been a lot of discussion these days about what our -- about expectations and what would be clinically relevant. And I think we're very excited after waiting for several years for these results to be on the doorstep here of seeing the first trial readout. I think Novartis has been pretty explicit about their expectations for what is clinically relevant. So we would certainly defer to them. But I think you bring up a really important point, which is this is the first outcome study where the world is going to see for Lp(a). So there's certainly a lot we will learn in terms of benefit, what -- to your question specifically, what is the higher -- what does higher baseline levels of Lp(a) mean for mean for patients and their ability to benefit from these therapies. So we are eagerly awaiting the results with everyone else and look forward to discussing them once we have some data to talk about. Operator: And the next question is going to come from Umer Raffat with Evercore. Michael DiFiore: This is Mike DiFiore in for Umer. Two for me. For the cliramitug transaction, the royalty is ultimately dependent on the Phase III cardiovascular outcomes trial. Perhaps walk us through how you handicap Phase III based on the Phase I biomarker effects as well as the existing correlation data, given the unproven mechanism. And then more general, my second question is regarding R&D co-funding. It's a very large underpenetrated opportunity. So my question is, as R&D co-funding scales, how do you prevent adverse selection where partner companies retained the program for the best internal risk-adjusted returns and offer you those with perhaps less favorable hidden biology or commercial optionality? Pablo Legorreta: Thanks. Marshall will take your first question on cliramitug and then Chris will take the question on this other huge opportunity of R&D funding. Marshall Urist: Thanks, Mike. So we were really happy to add cliramitug to our portfolio. And what underlies our enthusiasm for this. I would talk about it in a couple of different areas. First is there are some really intriguing biomarker data across from the earlier studies, across imaging data of the heart to show that you're actually removing amyloid, other important biomarkers like NT-proBNP, which is a marker of heart wall stress and many others in the data that are consistent with cliramitug doing what we think it does, which is remove amyloid from the heart. And just to remind everyone, TTR amyloidosis is a disease where every product has gone into a Phase III outcome study based on biomarker data. And as we've seen with the 2 oral therapies that are out there with the -- and with Amvuttra, which is in our portfolio, you've certainly seen that biomarker data translate into positive end up positive CV benefit in an outcome study. And then maybe a little bit further -- a little bit less direct is just really interesting data that we've seen with amyloid depletion in other amyloid driven diseases like Alzheimer's disease, where we're learning -- we're increasingly learning that removal of amyloid can drive clinical benefit. And then in an unrelated amyloidosis condition called AL amyloidosis, AstraZeneca has recently shown some very interesting data with another amyloid depleter product in that disease, which suggests a benefit on -- which suggests the cardiovascular benefit from depleting that form of amyloid. So certainly, we put all those together to really inform our confidence and excitement about this. Christopher Hite: And then on your second question, Mike, on adverse selection and co-funding of pharma R&D. It's a good question, and it's something that we emphasize on every initial call we have with pharma. Some of the opportunities we look at with pharma co-funding we're going to them and saying, this is what we want to fund. Some of those conversations are initiated by pharma and them saying what they want to fund. But in -- I just want to remind you that our bar is extraordinarily high when we're making these investments, right? We're putting lots of capital -- deploying a lot of capital in those transactions as evidenced by the 2 transactions we did this year with Teva and J&J. And we really emphasized in every situation that we want to fund their most exciting assets. And that is a key criteria for us, and we're very disciplined about that. And I think if you look at the 2 deals we did this year with Teva and J&J, you can see that, that is exactly what's happening. Operator: And our next question will come from Nick Jennings with Goldman Sachs. Asad Haider: It's Asad. Sorry about that. Congrats on the performance. One for Terry first. Just in light of the continued strong results over the past few quarters, just curious as to how you're tracking towards the $4.7 billion portfolio receipts 2030 and if and when you're thinking of potentially updating that? And then for Marshall, you noted in the slides that there are several therapeutic areas where you've built expertise and have conviction in, oftentimes placing multiple bets at the same -- in the same space. So just maybe looking across the landscape, what are some of the emerging TAs that are catching your interest today and that we could see you moving into over time? Terrance Coyne: Sure. So on our long-term guidance of $4.7 billion or more on the top line by 2030, we feel really good about where we're tracking. I think it's -- really focused on that guidance at our Investor Day in September. So it's probably still early to be thinking about any changes there, but we feel like we're tracking really well. We're really happy with how the portfolio is performing. And feel really good about the opportunities to deploy capital in new royalties as well. So overall, we're in a really good place there. Marshall Urist: And Asad, on your second question, thanks for that question, and it's a good one. And without being specific, I think it does -- I think what's informative maybe is how we think about it and how we approach it. I think as Pablo mentioned, we couldn't be prouder of the team that we have built, our culture around investing the discipline that we've shown in terms of how we approach investing. And the way we have set up the team, to get to your question, is we want to have the ability to be as broad as we possibly can be, to be generous in the sense that we are open and ready to open and ready to analyze any therapeutic area, any product, really anywhere in the world now that we see that could be interesting. So like we've always said, we don't necessarily think about the portfolio from a top-down perspective, we want to be open to great products in whatever TA and whatever form they come to us and make sure our team is ready to set up and execute and for us to be a great partner. Operator: And our next question will come from Jason Gerberry with Bank of America. Jason Gerberry: Just a follow-up on China and the commentary about just taking a patient approach with respect to that market and leveraging innovation coming out of Chinese biotech companies. Just thoughts on U.S. policy risk and proposed -- any proposed license restrictions I know pharma and bio are both opposed to these measures. But do you view this as a risk? Is this something -- when you think about taking a patient approach, just taking a wait to see how the dust settles sort of thought there. And then I appreciate the commentary on milestone dynamics first half '26 versus prior year. As we look to the second half, I know there's a couple of PDUFAs, including like Ziihera. So wondering if it's realistic to be thinking about milestones being a more meaningful contributor in second half? Pablo Legorreta: Yes. So I'm just going to make a very quick comment about China, but Chris is going to add and then Marshall will pick up the other question. China is a really interesting opportunity. And I've talked in the past about why. And if you think about it, the innovation is really extraordinary, and there's so many companies there with attractive assets, but they all need U.S. and European partners to actually run the clinical trials that are necessary in these markets to get approval by FDA and EMA. And they also need a commercial partner. So what's going to happen, and it's been happening is that they're going to out-license their product, and that creates royalties. And what also happens is that, for the most part, the IP is put into an offshore entity. It's not left in a Chinese entity. And the transaction is entered into between Cayman company or an offshore entity owned, obviously, by the Chinese company and a Western U.S. or European pharma company. And the contract is not a Chinese contract, but it's a contract based on U.S. or European laws. So -- and if you look at the deal we did last year with Amgen, where we bought Imdelltra, it's like no different than the typical royalty transactions we do, where we're getting paid by Amgen, and it was a contract again, in the jurisdictions where we are very comfortable and experienced. So it's a very similar business to what we do today. I think the other last comment I would make is that royalties are different than equity. And you can see how sometimes it's more -- equity is more complicated, more visible, and it's easier for governments actually to put restrictions on equity investments. But a royalty is a contract and that gives rise to payments. So very different sort of more under the radar. But Chris, do you want to add anything? Christopher Hite: Yes. Just to add, I mean, we're obviously monitoring what's going on with the COINS Act and the proposed amendments and the BINSA Act and whatnot. And it's really sort of too early to comment on the specifics. And -- but we are obviously following that closely. The bottom line is we're very committed to the opportunity there. We've hired Ken Sun, super excited about that hire and building out that opportunity. We'll continue to monitor the situation here in Washington, but it's important to have a local presence there and the opportunity, I would note that the opportunity already exists because the last 5 or 6 years of all the out-licensing, the Western multinationals, there is a substantial number of royalty, royalty agreements that already are in place regardless of what happens in Washington. So that's a pretty big opportunity already. Terrance Coyne: And then, Jason, your question on milestones, just to sort of reiterate what we said previously, we continue to expect milestones and other contractual receipts to be around $60 million for the year. Operator: I am showing no further questions at this time. I will now turn the call back to Pablo for closing remarks. Pablo Legorreta: Thank you, operator, and thanks to everyone on the call for your continued interest in Royalty Pharma. Just want to finish with one quick comment, which is that looking back to this business that we've been building over 30 years and also then our public offering in 2020, it's just remarkable to me how this business has performed with incredible very, very high consistency in growth and profitability and very high level of predictability. And I mentioned at the beginning of the call that we -- this is our 25th quarter after our IPO in 2020. So more than 6 years of being a public company. And with this extraordinary record of predictable strong growth. So anyway, I just thought I would mention that. And again, if anybody has any questions, please feel free to reach out to George Grofik and his team. But thank you very much. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Royalty Pharma Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Royalty Pharma Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Royalty Pharma (RPRX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Revolution Medicines, Inc.? Here are five stocks we like better. Daraxonrasib moved closer to commercialization: The FDA accepted Revolution Medicines’ application for previously treated metastatic pancreatic cancer, while the company expanded patient access and prepared its U.S. sales, services, supply and distribution infrastructure. Pipeline development is accelerating: The company reported encouraging early response data for zoldonrasib and elironrasib combinations in pancreatic and lung cancer, advanced multiple Phase III studies and plans additional registrational trials in 2026. Spending and funding both increased: Revolution ended the quarter with $3.9 billion in cash and investments after raising $2.2 billion and receiving $250 million from Royalty Pharma, but its net loss widened to $644 million and 2026 operating expenses are now projected at $2.1 billion–$2.2 billion. Revolution Medicines (NASDAQ:RVMD) said its second-quarter 2026 results reflected continued investment in late-stage cancer programs, commercial launch preparations and manufacturing capacity as it advances daraxonrasib and other RAS-targeted therapies across pancreatic and lung cancer. The company ended the quarter with $3.9 billion in cash and investments, including proceeds from April offerings of common stock and convertible notes that generated $2.2 billion in gross proceeds, as well as a $250 million second royalty tranche from Royalty Pharma. Revolution Medicines said up to an additional $1.5 billion remains available under that funding arrangement if specified milestones are achieved. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Net loss for the quarter ended June 30 widened to $644 million from $248 million a year earlier. The quarterly loss included a $151 million non-cash charge related to the increased fair value of warrants assumed in the EQRx acquisition, driven by an increase in Revolution Medicines’ stock price. Chairman and Chief Executive Officer Mark Goldsmith said the company’s new drug application for daraxonrasib in previously treated metastatic pancreatic cancer has been accepted for review by the U.S. Food and Drug Administration. The application is supported by the completed Phase III RASolute 302 study, whose results were presented at the American Society of Clinical Oncology meeting and published in the New England Journal of Medicine. → 3 Drone Stocks That Should Soar After the Summer Slump Goldsmith said RASolute 302 showed statistically significant and clinically meaningful improvements in overall survival, progression-free survival and patient-reported quality-of-life measures for daraxonrasib monotherapy compared with chemotherapy, with what the company described as a manageable safety and tolerability profile. Revolution Medicines has also established an FDA-cleared expanded access program for eligible U.S. patients. Goldsmith said the program has activated sites in nearly all 50 states and Puerto Rico, spanning academic cancer centers and community oncology practices. The company has approved more than 90% of reviewed requests and provided daraxonrasib on behalf of more than 2,000 eligible patients. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure In Europe, the European Medicines Agency has designated daraxonrasib as a high priority under its Cancer Medicines Pathfinder and started a phased review intended to accelerate assessment ahead of a full marketing authorization application. Goldsmith said the company is continuing discussions with the EMA and other regulatory authorities. The company said its U.S. commercial infrastructure is in place for a potential launch, including a sales organization, field access team, patient services program, commercial supply and distribution network. Anthony Mancini, chief global commercialization officer, said the sales organization includes about 60 individuals and is designed to support a pancreatic cancer launch while broader commercialization infrastructure could support future indications. Revolution Medicines continues to enroll patients in the Phase III RASolute 303 study in first-line metastatic pancreatic cancer and RASolute 304 study in the adjuvant setting, both involving daraxonrasib. The company is also enrolling patients in RASolute 305, a Phase III study of zoldonrasib plus chemotherapy in first-line metastatic pancreatic cancer with RAS G12D mutations. The company recently initiated RASolute 309, a Phase III study evaluating the combination of daraxonrasib and zoldonrasib in the first-line RAS G12D pancreatic cancer setting. At the European Society for Medical Oncology Gastrointestinal Cancers Congress, Revolution Medicines reported preliminary data for zoldonrasib combined with chemotherapy in first-line RAS G12D pancreatic cancer. The company reported objective response rates of 82% with modified FOLFIRINOX and 61% with gemcitabine plus nab-paclitaxel, with disease control rates of 96% and 90%, respectively. It said longer follow-up is needed to assess durability. In another study, the daraxonrasib-zoldonrasib doublet produced objective response rates of 50% in second-line patients and 47% in patients treated in the third line or later, according to the company. Median progression-free survival was 9.6 months in the second-line group and 7.6 months in the later-line group. Median overall survival had not been reached in the second-line setting, while it was 10.5 months in the third-line-or-later group. Chief Development Officer Alan Sandler said the company is advancing mutant-selective RAS(ON) inhibitors in first-line non-small cell lung cancer. The FDA has granted breakthrough therapy designation to daraxonrasib for previously treated metastatic non-small cell lung cancer with KRAS mutations other than G12C in patients who previously received platinum chemotherapy and PD-1 or PD-L1 therapy. Revolution Medicines expects to complete enrollment in its Phase III RASolve 301 study of daraxonrasib in previously treated RAS-mutant non-small cell lung cancer this year, supporting an initial readout in 2027. The company also disclosed early combination data for zoldonrasib and elironrasib with pembrolizumab and platinum-based chemotherapy in previously untreated non-small cell lung cancer. In KRAS G12D disease, zoldonrasib’s combination produced an 82% objective response rate and disease control in all evaluable patients after a median 3.4 months of follow-up as of May 11. For elironrasib in RAS G12C non-small cell lung cancer, the company reported an 85% confirmed objective response rate, a 97% disease control rate and a 95% progression-free survival rate at six months, based on median follow-up of 8.7 months. Sandler said safety findings for both regimens were broadly consistent with pembrolizumab-based chemotherapy, with no new or unexpected safety signals reported for zoldonrasib. Revolution Medicines has initiated RASolve 308, a randomized placebo-controlled study of zoldonrasib plus pembrolizumab and platinum-doublet chemotherapy in RAS G12D non-small cell lung cancer. It expects to begin RASolve 307, a similar study of elironrasib in RAS G12C disease, in the fourth quarter of 2026. Research and development expense increased to $395 million from $224 million a year earlier, primarily reflecting higher clinical trial and manufacturing costs for daraxonrasib and zoldonrasib, additional personnel and stock-based compensation. General and administrative expense rose to $110 million from $41 million, driven by headcount, commercialization preparations and administrative costs. The company increased its full-year 2026 GAAP operating expense forecast to between $2.1 billion and $2.2 billion, including expected non-cash stock-based compensation of $270 million to $290 million. Chief Financial Officer Jack Anders said the higher outlook reflects accelerated manufacturing for clinical and potential commercial supply, expanded clinical development activity and increased U.S. and international commercialization investments. Goldsmith said Revolution Medicines plans to provide a colorectal cancer data update and outline its development plans in the fourth quarter. The company also expects to identify a recommended Phase II dose for RMC-5127 in the second half of 2026 and initiate a first-in-human study of RM-055 in the fourth quarter. Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company's research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance. The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Revolution Medicines Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Cash and Investments: $3.9 billion at the end of Q2 2026, including $2.2 billion in gross proceeds from public offerings and a $250 million royalty tranche from Royalty Pharma. R&D Expenses: $395 million in Q2 2026, up from $224 million in Q2 2025, driven by increased clinical trial and manufacturing costs. G&A Expenses: $110 million in Q2 2026, up from $41 million in Q2 2025, due to higher personnel costs and commercialization activities. Net Loss: $644 million in Q2 2026, compared to $248 million in Q2 2025, including a $151 million noncash charge related to warrant fair value changes. 2026 GAAP Operating Expense Guidance: Updated to between $2.1 billion and $2.2 billion, including $270 million to $290 million in noncash stock-based compensation. Warning! GuruFocus has detected 4 Warning Sign with RVMD. Is RVMD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revolution Medicines Inc (NASDAQ:RVMD) reported paradigm-changing clinical results from the Phase 3 RASolute 302 study, showing statistically significant improvements in overall survival, progression-free survival, and quality of life for daraxonrasib in previously treated metastatic pancreatic cancer. The company's expanded access program (EAP) has been highly successful, providing daraxonrasib to over 2,000 eligible patients across nearly all US states, with more than 90% of requests approved. The FDA has accepted the New Drug Application (NDA) for daraxonrasib in pancreatic cancer, and the EMA has initiated a phase review under its Cancer Medicines Pathfinder project, potentially accelerating regulatory timelines. Early clinical data for zoldonrasib in first-line pancreatic cancer showed compelling antitumor activity, with objective response rates of 82% and 61% when combined with modified FOLFIRINOX or gemcitabine plus nab-paclitaxel, respectively. In non-small cell lung cancer, both zoldonrasib and elironrasib demonstrated highly encouraging antitumor activity in combination with pembrolizumab and chemotherapy, with objective response rates of 82% and 85%, respectively, supporting the initiation of registrational trials RASolve 308 and 307. The company ended Q2 2026 with a strong cash position of $3.9 billion, including proceeds from a $2.2 billion capital raise and a $250 million royalty tranche, providing ample financial flexibility. The company reported a significant increase in net loss for Q2 2026, reaching $644 million compared to $248 million in the same period last year, driven by higher operating expenses and a noncash charge related to warrant fair value changes. R&D and G&A expenses increased substantially year-over-year, with R&D expenses rising to $395 million from $224 million and G&A expenses rising to $110 million from $41 million, reflecting aggressive investment in pipeline and commercial readiness. The company updated its 2026 GAAP operating expense guidance upward to between $2.1 billion and $2.2 billion, indicating higher-than-expected spending on manufacturing, clinical development, and commercial infrastructure. There is a potential risk of crossover in the Phase 3 frontline pancreatic cancer trials (RASolute 303), as patients in the control arm may drop out to receive commercial daraxonrasib upon approval, potentially confounding overall survival analyses. The company acknowledged that it lacks quantitative feedback from the expanded access program, making it difficult to assess real-world performance of daraxonrasib outside of clinical trials. Management declined to provide specific details on the data shared with the FDA to support breakthrough therapy designation for daraxonrasib in non-small cell lung cancer, leaving some uncertainty about the strength of the evidence. Q: Regarding the frontline non-small cell lung cancer (NSCLC) trials (RASolve 307 and 308), are these studies setting any minimum or maximum threshold for the proportion of PD-L1 expression, depending on whether it's low or high, that you're recruiting? A: Alan Sandler (Chief Development Officer): We are not putting guidelines in terms of requirements of the numbers. In a large Phase 3 study, there should be a natural representation of all three PD-L1 subgroups. The most important aspect is to stratify to ensure equal representation on both arms to maintain balance. Q: For patients that end up in the control arm of your Phase 3 frontline PDAC studies, how do you plan to assess those that drop out potentially even after receiving just a single dose of chemo and then eventually go on to receive commercial daraxonrasib upon approval? How much of a risk might this dynamic pose to your frontline studies in terms of measuring OS and potentially even PFS? A: Wei Lin (Chief Medical Officer): This is a very important question we have given a lot of thought to. The Phase 3 trial has a co-primary endpoint of PFS and overall survival. A dropout in the control would not affect PFS, but it could potentially affect the overall survival analysis. We are being very thoughtful in geographically activating the 303 trial sites, knowing that global approval and access will be graduated starting with the US. We are also working with investigators to ensure patients understand their options before coming on trial to maintain the integrity of the experiment. Q: There's been a lot of investor excitement about PRMT5 combination data generated with your molecule from your partner, Tango. What are your latest thoughts on the potential of that combination? And do you feel like you need a PRMT5 within your own portfolio in order to cover all of your bases? A: Mark Goldsmith (Chairman and CEO): Biologically and pharmacologically, it's an intriguing hypothesis supported by preclinical work. Tango has put forth initial data showing high response rates, but that body of evidence should be grown with more patients, dose optimization, and longer follow-up. We don't think we need a PRMT5 inhibitor in our portfolio as we have plenty of high-priority work. At the end of the day, daraxonrasib should be the backbone of therapy, and we may add various things, including PRMT5 inhibitors, immunologic agents, or other RAS inhibitors. Q: On the commercial side, are you planning a sales force that's commensurate with the second-line PDAC setting, or are you also going to size it for frontline and potentially non-small cell lung cancer right away? And on the EAP, are those 2,000 patient adds starting from May 1st-ish, when the FDA first made that announcement? A: Mark Goldsmith (Chairman and CEO): The number I gave was greater than 2,000, and that is a cumulative number. The EAP started out more as a trickle and then expanded as sites became part of the program. Qualitatively, it's a very robust program with very high interest that continues to grow. Anthony Mancini (Chief Global Commercialization Officer): We have a team of around 60 individuals that will fill the need for PDAC. We also have a fully operational field access team, field patient services team, MSL team, and thought leader liaison team in place. We are ready for PDAC and will be ready should other indications come. Q: Given Roche's head win against sotorasib and adagrasib in CRESCENDO-1, do you think you'd need to run a trial against divarasib? A: Alan Sandler (Chief Development Officer): We will be having all of our discussions with the FDA. The control arm is dictated by the current state of affairs at the time the study is initiated, which requires not necessarily a positive study, but a full approval. Since that is not the case at this time, we don't feel that would be necessary. Q: On CRC, what's your latest thoughts on what proof-of-concept looks like in that indication, particularly after we've seen adagrasib's confirmatory trial in the second-line setting fail to demonstrate PFS or OS benefit despite exciting response rate data? And on the lung cancer side, why do you think you're going to be better than the second-gen G12C trials running right now in the first line? A: Mark Goldsmith (Chairman and CEO): On the CRC question, that is best addressed when we are able to frame our plans and provide some data, so we will defer that to a later time. Alan Sandler (Chief Development Officer): On the NSCLC question, we believe elironrasib has a very good profile, both safety and efficacy. Given the data we've shown today, we believe elironrasib has a highly competitive profile in monotherapy and in the first-line setting in combination with pembrolizumab and doublet chemotherapy. With our suite of mutant selective agents, we have a very compelling position as we will be able to target over 70% of patients with RAS mutant non-small cell lung cancer. Q: I was hoping you could clarify what you mean by visibility into CRC development strategy expected in the fourth quarter. Should investors expect to leave this update having conviction that you have a registrational path in CRC? And do you have any plans to make a registrational move outside the big three RAS indications? A: Mark Goldsmith (Chairman and CEO): We will show some data and tell you what we plan to do with it. Typically, when we've announced a development strategy, we've supported it by data that justify it, so that would be a reasonable expectation. Regarding tumors outside of the big three, we are certainly interested in those. Daraxonrasib could serve a wide variety of tumors, and we have data across other tumor types. You should expect daraxonrasib to continue to make its way into other contexts, but the exact strategy may differ from indication to indication. Q: Just wanted to get any updated commentary around the precedent in oncology to get accelerated approval in the first line based on similar data to what you have, along with the full approval that you're expecting for the second-line PDAC indication, now that your NDA has been accepted by the FDA. A: Mark Goldsmith (Chairman and CEO): Not really much to add to that. The NDA is primarily driven by the 302 data set, which is randomized data in patients being treated in the second line for metastatic pancreatic cancer. There are additional data outside of that study that the FDA has access to. How they want to deal For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Royalty Pharma (RPRX) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.27 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.94%. A quarter ago, it was expected that this company would post earnings of $1.22 per share when it actually produced earnings of $1.3, delivering a surprise of +6.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Royalty Pharma, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $773 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.52%. This compares to year-ago revenues of $727 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Royalty Pharma shares have added about 48.8% since the beginning of the year versus the S&P 500's gain of 13%. While Royalty Pharma has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Royalty Pharma was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.12 on $852.03 million in revenues for the coming quarter and $5.18 on $3.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Verastem (VSTM), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This drug developer is expected to post quarterly loss of $0.46 per share in its upcoming report, which represents a year-over-year change of -18%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Verastem's revenues are expected to be $23.15 million, up 981.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royalty Pharma PLC (RPRX) : Free Stock Analysis Report Verastem, Inc. (VSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Portfolio Receipts growth of 6% to $773 million; Royalty Receipts growth of 14% Net cash provided by operating activities of $728 million Raised full year 2026 guidance: Portfolio Receipts expected to be $3,400 million to $3,500 million NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today reported financial results for the second quarter of 2026 and raised full year 2026 guidance for Portfolio Receipts. “Royalty Pharma delivered strong second quarter results with Royalty Receipts growth of 14%,” said Pablo Legorreta, Royalty Pharma’s Chief Executive Officer and Chairman of the Board. “Our transaction pipeline remains exciting and we continued to bolster our development-stage pipeline in recent months, bringing total Capital Deployment to over $1 billion so far in 2026. Following our acquisition of a royalty on AstraZeneca’s cliramitug, our development-stage pipeline now totals 19 potential therapies. Lastly, our strong financial performance has allowed us to raise our top-line guidance for the second time this year, driven by the strength of our diversified portfolio. The fundamental tailwinds supporting our business are compelling and we remain well positioned as a premier capital allocator in life sciences to deliver consistent, compounding growth.” Double-digit growth in Royalty Receipts in the second quarter of 2026 Royalty Receipts grew 14% to $768 million, driven by Tremfya, Voranigo, Imdelltra and Evrysdi. Portfolio Receipts increased by 6% to $773 million, reflecting lower milestones and other contractual receipts. Strong transaction activity Acquired royalty on AstraZeneca’s cliramitug for transthyretin amyloidosis with cardiomyopathy in July 2026. Announced value of transactions of $1.7 billion and Capital Deployment of $1.1 billion as of August 4, 2026. Positive portfolio updates Revolution Medicines’ NDA for daraxonrasib in pancreatic cancer accepted for review by FDA and the EMA has started its accelerated review; Gilead’s Trodelvy received FDA and EC approval for first-line metastatic triple-negative breast cancer; GSK’s Jideytro received FDA approval for ROS1+ non-small cell lung cancer; Amgen’s Imdelltra received EC approval for small cell lung cancer. GSK completed the acquisition of Nuvalent (Jideytro and neladalkib for lung cancer); Teva completed the acquisition of Emalex Biosciences (ecopipam for Tourette syndrome). Raising financial guidance for full year 2026 (excludes contribution from future transactions) Royalty Pharma now expects 2026 Portfolio Receipts to be between $3,400 million and $3,500 million (previously $3,325 million to $3,450 million), representing expected Royalty Receipts growth of 7% to 10%. Financial & Liquidity Summary *See “Liquidity and Capital Resources” section. Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures calculated in accordance with the credit agreement. 2026 Financial Outlook Royalty Pharma has provided guidance for full year 2026, excluding new transactions and borrowings announced after the date of this release, as follows: Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. The above Portfolio Receipts guidance provided on August 5, 2026 includes expected Royalty Receipts growth of 7% to 10% in 2026. Royalty Pharma’s full year 2026 guidance reflects an estimated foreign exchange impact of approximately +1% to Portfolio Receipts, assuming current foreign exchange rates prevail for the rest of 2026. Payments for operating and professional costs in 2026 are expected to decrease as a percentage of Portfolio Receipts, compared to 8.9% in 2025, primarily due to extinguishment of the management fee following the completion of the internalization transaction on May 16, 2025. Total interest paid is based on the semi-annual interest payment schedule of Royalty Pharma’s existing notes and the quarterly interest payment schedules for the term loan assumed as part of the internalization transaction and borrowings under our revolving credit facility. In 2026, Royalty Pharma anticipates interest paid to be approximately $350 million to $360 million. Interest paid in the third quarter of 2026 is anticipated to be approximately $175 million, with a de minimis amount anticipated in the fourth quarter of 2026. These projections reflect repayment of the $380 million term loan in July 2026 and assume no additional debt financing in 2026. In the second quarter of 2026, Royalty Pharma collected interest of $5 million on its cash and cash equivalents, which partially offset interest paid. Royalty Pharma today provides this guidance based on its most up-to-date view of its prospects. This guidance assumes no major unforeseen adverse events or changes in foreign exchange rates and excludes the contributions from transactions announced subsequent to the date of this press release. Amounts shown in the table may not add due to rounding. Royalty Receipts was $768 million in the second quarter of 2026, an increase of 14% compared to $672 million in the second quarter of 2025. The increase was primarily driven by Tremfya, Voranigo, Imdelltra and Evrysdi, partially offset by declines from Promacta due to U.S. generic competition and from Imbruvica. Royalty Receipts from Evrysdi included the benefit of the additional royalties acquired in December 2025. Portfolio Receipts was $773 million in the second quarter of 2026, an increase of 6% compared to $727 million in the second quarter of 2025, primarily driven by the same Royalty Receipts increases noted above, partially offset by lower Milestones and other contractual receipts due to a one-time distribution received in the prior year period. Liquidity and Capital Resources Royalty Pharma’s liquidity and capital resources are summarized below: As of June 30, 2026, Royalty Pharma had cash and cash equivalents of $812 million and total debt with principal value of $9.2 billion. In July 2026, Royalty Pharma repaid the $380 million term loan upon maturity. In the second quarter of 2026, Royalty Pharma paid a quarterly dividend of $0.235 per share, equating to $135 million in dividends and distributions. Royalty Pharma repurchased approximately 0.9 million Class A ordinary shares for $45 million in the second quarter and two million Class A ordinary shares for $96 million for the first six months of 2026. The weighted-average number of diluted Class A ordinary shares outstanding for the second quarter of 2026 was 557 million, a decline of 1% as compared to 562 million for the second quarter of 2025. Liquidity Summary Amounts may not add due to rounding. Adjusted EBITDA (non-GAAP) was $736 million in the second quarter of 2026. Payments for operating and professional costs were 4.8% of Portfolio Receipts. Adjusted EBITDA is calculated as Portfolio Receipts minus payments for operating and professional costs. Portfolio Cash Flow (non-GAAP) was $736 million in the second quarter of 2026. Portfolio Cash Flow is calculated as Adjusted EBITDA minus interest paid or received, net. This measure reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases, or utilized for other discretionary investments. Refer to Table 4 for Royalty Pharma’s reconciliation of each non-GAAP measure to the most directly comparable GAAP financial measure, net cash provided by operating activities. Capital Deployment reflects cash payments during the period for new and previously announced transactions. Capital Deployment was $349 million in the second quarter of 2026, consisting primarily of royalty funding for daraxonrasib and R&D funding for JNJ‑4804 and litifilimab. The table below details Capital Deployment by category: Capital Deployment Amounts may not add due to rounding. Royalty Transactions As of August 4, 2026, Royalty Pharma has announced new transactions of up to $1.7 billion, which reflects the entire amount of potential capital committed for new transactions, including potential future milestones. In July 2026, Royalty Pharma acquired a portion of Neurimmune AG’s royalty interest in AstraZeneca’s cliramitug for up to $425 million, including $125 million upfront. Cliramitug is a Phase 3 first-in-class transthyretin (TTR)-fibril-depleting antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy, a progressive, degenerative and fatal disease caused by misfolded proteins that accumulate in the heart. The information in this section should be read together with Royalty Pharma’s reports and documents filed with the SEC at www.sec.gov and the reader is also encouraged to review all other press releases and information available in the Investors section of Royalty Pharma’s website at www.royaltypharma.com. Key Developments Relating to the Portfolio The key developments related to Royalty Pharma’s royalty interests are discussed below based on disclosures from the marketers of the products. Financial Results Call Royalty Pharma will host a conference call and simultaneous webcast to discuss its second quarter of 2026 results today at 8:00 a.m., Eastern Time. Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days. About Royalty Pharma plc Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, GSK’s Trelegy, Biogen’s Tysabri and Spinraza, Roche’s Evrysdi, Astellas and Pfizer’s Xtandi, Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Servier’s Voranigo, Gilead’s Trodelvy, Amgen’s Imdelltra and Alnylam’s Amvuttra, among others, and 19 development-stage product candidates. Forward-Looking Statements The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth and plans for capital deployment, plus the benefits of the internalization transaction, including expected accretion, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law. Certain information contained in this document relates to or is based on studies, publications, surveys and other data obtained from third-party sources and the company’s own internal estimates and research. While the company believes these third-party sources to be reliable as of the date of this document, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources. In addition, all of the market data included in this document involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while the company believes its own internal research is reliable, such research has not been verified by any independent source. For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov. Portfolio Receipts Portfolio Receipts is a key performance metric that represents Royalty Pharma’s ability to generate cash from Royalty Pharma’s portfolio investments, the primary source of capital that is deployed to make new portfolio investments. Portfolio Receipts is defined as the sum of Royalty Receipts and Milestones and other contractual receipts. Royalty Receipts includes variable payments based on sales of products, net of contractual payments to the legacy non-controlling interests, that are attributed to Royalty Pharma. Milestones and other contractual receipts include sales-based or regulatory milestone payments and other fixed contractual receipts, net of contractual payments to legacy non-controlling interests, that are attributed to Royalty Pharma. Portfolio Receipts does not include royalty receipts and milestones and other contractual receipts that were received on an accelerated basis under the terms of the agreement governing the receipt or payment. Portfolio Receipts also does not include proceeds from equity securities or proceeds from purchases and sales of marketable securities, both of which are not central to Royalty Pharma’s fundamental business strategy. 2025 Portfolio Receipts does not include the $511 million of proceeds from the sale of the MorphoSys Development Funding Bonds, as the transaction was treated as an asset sale. Portfolio Receipts is calculated as the sum of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Cash collections from financial royalty assets, Cash collections from intangible royalty assets, Other royalty cash collections, Proceeds from available for sale debt securities and Distributions from equity method investees less Distributions to legacy non-controlling interests - Portfolio Receipts, which represent contractual distributions of Royalty Receipts, milestones and other contractual receipts to the Legacy Investors Partnerships. Use of Non-GAAP Measures Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP. Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP. The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity. Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities. The company has provided reconciliations of these non-GAAP liquidity measures to the most directly comparable GAAP financial measure, being net cash provided by operating activities in Table 4. Royalty Pharma Investor Relations and Communications +1 (212) [email protected] Amounts may not add due to rounding. EPAs: Equity Performance Awards. Amounts may not add due to rounding. EPAs: Equity Performance Awards. Amounts may not add due to rounding. Notes (1)  Portfolio Receipts is defined above in the section entitled “Portfolio Receipts.” (2)  Adjusted EBITDA is defined under the credit agreement as Portfolio Receipts minus payments for operating and professional costs. Operating and professional costs reflect Payments for operating and professional costs from the GAAP condensed consolidated statements of cash flows. See GAAP to Non-GAAP reconciliation in Table 4. (3)  Portfolio Cash Flow is defined under the credit agreement as Adjusted EBITDA minus interest paid or received, net. See GAAP to Non-GAAP reconciliation in Table 4. Portfolio Cash Flow reflects the cash generated by Royalty Pharma’s business that can be redeployed into value-enhancing royalty acquisitions, used to repay debt, returned to shareholders through dividends or share purchases or utilized for other discretionary investments. (4)  Capital Deployment is calculated as the summation of the following line items from Royalty Pharma’s GAAP condensed consolidated statements of cash flows: Investments in equity method investees, Purchases of available for sale debt securities, Acquisitions of financial royalty assets, Acquisitions of other financial assets, Milestone payments, Development-stage funding payments less Contributions from legacy non-controlling interests - R&D. (5)  Other products primarily include Royalty Receipts on the following products: Crysvita, Erleada, Farxiga/Onglyza, Nesina, Niktimvo, Nurtec ODT, Orladeyo, Prevymis and distributions from the Legacy SLP Interest, which is presented as Distributions from equity method investees on the GAAP condensed consolidated statements of cash flows. (6)  The table below shows the line item for each adjustment and the direct location for such line item on the GAAP condensed consolidated statements of cash flows. (7)  The condensed consolidated statement of operations for 2025 has been recast to reflect the adoption of ASU 2025-07 by removing the losses previously recognized on derivative.

This article first appeared on GuruFocus. Portfolio Receipts: Grew 6% in Q2 2026 to $773 million, ahead of expectations. Royalty Receipts: Grew 14% in Q2 2026, driven by strong performances from Tremfya, Voranigo, Emdeltra, and Evrysdi. Total Receipts: Grew 14% in Q2 2026. Return on Invested Capital: 14.2% for the last 12 months ending Q2 2026. Return on Invested Equity: 20.1% for the last 12 months ending Q2 2026. Portfolio Cash Flow: $736 million for Q2 2026, with a margin of around 95%. Operating and Professional Costs: Equated to 4.8% of portfolio receipts in Q2 2026. Capital Deployment: $349 million in Q2 2026, mainly for royalty funding for daraxonrasib and R&D funding for J&J's 4804 and litufilimab. Share Count: Weighted average share count declined by approximately 5 million shares or 1% in Q2 2026 versus the prior year period. Cash and Equivalents: $812 million at the end of June 2026. Debt: Investment grade debt outstanding of $9.2 billion with a weighted average duration of around 12 years. Leverage: 2.8 times total debt to adjusted EBITDA, or 2.6 times on a net basis. Capital Allocation: Deployed $877 million on royalty deals in the first half of 2026 and returned approximately $367 million to shareholders, including share repurchases of around $100 million. 2026 Guidance: Portfolio receipts expected to be in the range of $3.4 billion to $3.5 billion, up from $3.325 billion to $3.45 billion previously. 2026 Royalty Receipts Growth Guidance: Around 7% to 10%, compared with 4% to 8% previously. 2026 Milestones and Other Contractual Receipts: Expected to decrease from $128 million in 2025 to approximately $60 million in 2026. 2026 Operating and Professional Costs Guidance: Expected to be in the range of 5.5% to 6.5% of portfolio receipts. 2026 Interest Paid Guidance: Expected to be around $350 million to $360 million. Warning! GuruFocus has detected 10 Warning Signs with RPRX. Is RPRX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Royalty Pharma PLC (NASDAQ:RPRX) delivered strong financial performance in Q2 2026, with portfolio receipts growing 6% and total receipts up 14%, exceeding guidance and marking the 25th consecutive quarter of double-digit growth. The company raised its full-year 2026 guidance for the second consecutive quarter, now expecting portfolio receipts of $3.4 billion to $3.5 billion and royalty receipts growth of 7% to 10%. Royalty Pharma PLC (NASDAQ:RPRX) continues to generate high returns, with return on invested capital of 14.2% and return on invested equity of 20.1% over the last 12 months. The acquisition of a 3.75% royalty on AstraZeneca's cliramitug, a potential blockbuster for ATTR-CM, adds a differentiated asset with peak annual royalty potential of $110 million to $190 million and an expected IRR in the teens. The development-stage pipeline has expanded significantly to 19 potential therapies, with peak royalty potential of approximately $2 billion and a 90% historical success rate in achieving regulatory approval. Royalty Pharma PLC (NASDAQ:RPRX) achieved a credit rating upgrade to BBB from all major agencies, enhancing financial flexibility with access to over $4 billion in cash, revolver, and debt markets. The company returned approximately $367 million to shareholders in the first half of 2026 through dividends and share repurchases, demonstrating a commitment to capital returns. Portfolio diversification and strong performance from key assets like Tremfya, Voranigo, Emdeltra, and Evrysdi helped absorb headwinds from Promacta and IMBRUVICA, enabling double-digit royalty receipts growth. The company's unique business model and barriers to entry, including a $22 billion invested capital portfolio and irreplaceable royalties, provide a significant competitive moat. Royalty Pharma PLC (NASDAQ:RPRX) is expanding into new growth areas, including synthetic royalties and the Chinese market, with a strong team and strategic hires to drive long-term opportunities. Milestones and other contractual receipts declined significantly in Q2 2026 due to a one-time payment in the prior year period, impacting overall portfolio receipts growth. The company faces headwinds from the loss of exclusivity for Promacta and the launch of biosimilar TYSABRI in the US, which could pressure future royalty receipts. The cliramitug royalty is dependent on the success of a Phase III outcomes trial, with results not expected until 2028, introducing clinical and regulatory risk. The development-stage pipeline, while promising, carries inherent risks, and the company's guidance does not account for potential future royalty acquisitions, limiting upside visibility. Operating costs are expected to increase in the second half of 2026 due to seasonality, potentially impacting margins despite the benefits of internalization. The company's leverage stands at 2.8 times total debt to adjusted EBITDA, and interest payments are expected to be around $350 million to $360 million in 2026, which could constrain capital deployment. The synthetic royalty opportunity, while growing, remains a small portion of the overall biopharma funding market, and scaling it may face challenges in deal flow and competition. Expansion into the Chinese market is still in early stages, with regulatory and policy risks, including potential US restrictions on investments, posing uncertainties. The company's reliance on a few key products for growth, such as Tremfya and Evrysdi, exposes it to concentration risk if these assets underperform. The potential impact of the cardio transform trial on the TTR market, while possibly benefiting Amvuttra, introduces uncertainty in the competitive landscape for cliramitug. Q: Can you provide high-level thoughts on the implications of the recent Cardio-Transform data for Amvuttra and the TTR market, and also update us on the synthetic royalty opportunity?A: Marshall Urist (EVP, Research & Investments) stated that Royalty Pharma is pleased with its two investments in TTR amyloidosis, viewing the market as highly interesting with the addition of the potentially transformative cliramitug. Regarding Amvuttra, he noted that while the Cardio-Transform trial failing is unfortunate for patients, it removes a near-term competitor and uniquely benefits Amvuttra, as the royalty is specific to that product and not Alnylam's follow-on. Chris Hite (Chairman of Partnering & Investments) added that the synthetic royalty opportunity remains a major growth driver, with the market growing ~40% since 2015 and representing only about 5% of biopharma funding, leaving significant room for penetration. Q: What is the flexibility to tilt deal structures toward equity given the increase in pharma/biotech M&A, and does the improved credit rating or lower rates bias you to deploy more capital?A: Terry Coyne (EVP, CFO) explained that the company has significant financial flexibility and is well-positioned to partner with companies in any way they need, which could create opportunities from sector M&A. He emphasized that Royalty Pharma is agnostic to the rate environment, having generated great returns in excess of its cost of capital during both rising and falling rate periods. The company will continue to access debt markets when needed while maintaining its investment-grade rating, and is pleased to now be BBB rated across all three major agencies. Q: Given the company's growth and expanded team, is there interest in leaning more into development-stage assets where returns could be higher, and what are the initial learnings from building a presence in China?A: Pablo Legorreta (CEO) stated that the 65/35 split between approved and development-stage investments has been consistent over the last 5-10 years and is expected to remain at a similar level. He noted that the current 12% of invested capital in unapproved assets could trend up to mid-to-high teens while maintaining a relatively low-risk portfolio. Regarding China, Legorreta said it is early days, but the company is committed to building that market, having hired a top player and increasing activity there. He emphasized patience, noting the opportunity is large and attractive in the long run. Q: Can you remind us of the reasons why it would be difficult to build a new competitor that resembles Royalty Pharma, and why investors should not be concerned about competition?A: Pablo Legorreta (CEO) explained that there are significant barriers to entry, including scale ($22 billion of invested capital at cost), cost of capital, and a superb team with a strong culture. He emphasized that the portfolio is irreproducible, as it took over a decade to assemble unique, one-of-a-kind assets like the Tremfya royalty or the daraxonrasib royalty. Even with $20-30 billion of capital, it would be impossible to replicate the portfolio spontaneously, as these assets are unique and the work of decades, providing a huge moat and barrier to entry. Q: What type of IRR are you able to drive in development-stage assets versus approved assets, and what level of MACE risk reduction would be clinically meaningful for the pelacarsen Lp(a) readout?A: Marshall Urist (EVP, Research & Investments) stated that for approved products, unlevered IRR expectations are in the high single to low double-digit range, typically at the higher end. For unapproved products, IRR expectations are in the teens, depending on risk profile and counterparty. He noted that levered returns, which shareholders actually enjoy, are significantly higher due to the company's capital structure. Regarding pelacarsen, Urist said Novartis has been explicit about their expectations for clinical relevance, and the trial will be the first outcome study for Lp(a), providing valuable learnings about baseline levels and patient benefit. Q: How do you handicap the Phase III success of cliramitug based on Phase I biomarker effects, and how do you prevent adverse selection in R&D co-funding?A: Marshall Urist (EVP, Research & Investments) highlighted the intriguing biomarker data from earlier studies, including imaging data showing amyloid removal and markers like NT-proBNP. He noted that every product in TTR amyloidosis has gone into Phase III based on biomarker data, and data from other amyloid-depleting therapies in Alzheimer's and AL amyloidosis support the potential for cardiovascular benefit. Chris Hite (Chairman of Partnering & Investments) addressed adverse selection, stating that the company emphasizes funding partners' most exciting assets and maintains a very high bar for investments, as evidenced by the Teva and J&J deals this year. Q: How are you tracking towards the $4.7 billion portfolio receipts target for 2030, and what emerging therapeutic areas are catching your interest?A: Terry Coyne (EVP, CFO) stated that the company feels really good about tracking towards the $4.7 billion or more top-line target by 2030, but it is still early to consider changes to that guidance. Marshall Urist (EVP, Research & Investments) explained that the team is set up to be generalists, open to analyzing any therapeutic area or product anywhere in the world. The company doesn't think about the portfolio from a top-down perspective but rather remains open to creating products in whatever therapeutic area they come from, ensuring the team is ready to execute and be a great partner. Q: What are your thoughts on US policy risk regarding China and proposed license restrictions, and should we expect milestones to be a more meaningful contributor in the second half?A: Pablo Legorreta (CEO) explained that royalties are different from equity, as they are contracts giving rise to payments, making them less visible and harder for governments to restrict. Chris Hite (Chairman of Partnering & Investments) noted the company is monitoring the Coins Act and Ben's Act closely, but the opportunity already exists given the substantial number of royalty agreements in place from the last 5-6 years of out-licensing. Terry Coyne (EVP, CFO) reiterated that milestones and other contractual receipts are still expected to be around $60 million for the year. Q: What was the reason for relatively low operating costs in Q2, and given the guidance, what will drive the increase in the second half?A: Terry Coyne For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Royalty Pharma PLC? Here are five stocks we like better. Royalty Pharma raised its 2026 outlook for the second consecutive quarter, now forecasting portfolio receipts of $3.4 billion to $3.5 billion. Second-quarter portfolio receipts reached $773 million, supported by strong royalty growth from Tremfya, Voranigo, IMDELLTRA and Evrysdi. The company agreed to invest up to $425 million in AstraZeneca’s investigational cliramitug, gaining a 3.75% worldwide sales royalty. The Phase III trial is fully enrolled, with results expected in 2028 and projected peak royalty payments of about $110 million to $190 million annually. Royalty Pharma continued deploying capital while expanding its development pipeline to 19 potential therapies. It invested $877 million in royalty deals during the first half and returned approximately $367 million to shareholders, including $100 million in share repurchases. How Royalty Pharma Prints Cash Without Biotech's Biggest Risks Royalty Pharma (NASDAQ:RPRX) raised its 2026 outlook for the second consecutive quarter after reporting higher second-quarter royalty receipts, continued capital deployment and progress across its development-stage pipeline. Chief Executive Officer Pablo Legorreta said the company delivered 6% growth in portfolio receipts, its reported top-line measure, and 14% growth in total receipts during the quarter. Portfolio receipts reached $773 million, slightly ahead of management’s expectations, while portfolio cash flow totaled $736 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 1 Trial, 2 Franchises: Zenas Stock Climbs on Landmark Data “We delivered 6% growth in portfolio receipts, our top line, and 14% growth in total receipts, which are our recurring cash flows,” Legorreta said. He added that the company has now recorded 25 consecutive quarters as a public company with double-digit growth on average. Chief Financial Officer Terry Coyne said Royalty Pharma now expects 2026 portfolio receipts of $3.4 billion to $3.5 billion, compared with prior guidance of $3.325 billion to $3.45 billion. The outlook assumes royalty-receipt growth of approximately 7% to 10%, up from the prior 4% to 8% range. → 3 Drone Stocks That Should Soar After the Summer Slump 4 Healthcare Stocks With Massive Gains—and More to Come The outlook incorporates the loss of exclusivity for PROMACTA, the launch of a Tysabri biosimilar in the U.S. and potential effects from the Inflation Reduction Act, according to Coyne. It also assumes milestones and other contractual receipts decline to about $60 million in 2026 from $128 million in 2025. Management maintained guidance for operating and professional costs at 5.5% to 6.5% of portfolio receipts and expects interest paid of about $350 million to $360 million for the full year. Coyne said second-half operating costs are expected to be higher than first-half levels because of cash-payment seasonality. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Royalty receipts grew 14% in the quarter, driven by Tremfya, Voranigo, IMDELLTRA and Evrysdi. The company said this growth offset headwinds from Promacta and IMBRUVICA. Portfolio-receipt growth was lower than royalty-receipt growth because the prior-year period included a one-time payment in milestones and other contractual receipts. Royalty Pharma announced it acquired a portion of Neurimmune’s royalty interest in AstraZeneca’s cliramitug for up to $425 million. The arrangement includes a $125 million upfront payment, another $125 million payment due in the first quarter of 2027, and up to $175 million tied to clinical and regulatory milestones. In exchange, Royalty Pharma will receive a 3.75% royalty on worldwide net sales of cliramitug, an investigational therapy for transthyretin amyloid cardiomyopathy, or ATTR-CM. Marshall Urist, executive vice president and head of research and investments, said cliramitug is designed to remove amyloid deposits already accumulated in the heart, distinguishing it from approved products intended to slow further accumulation. A Phase III outcomes study in roughly 1,200 patients is fully enrolled, with results expected in 2028. AstraZeneca has projected peak annual sales of $3 billion to $5 billion for cliramitug. Based on that estimate, Royalty Pharma expects potential peak annual royalty payments of approximately $110 million to $190 million and an internal rate of return in the teens, Urist said. The transaction is Royalty Pharma’s second investment in TTR amyloidosis following its 2025 investment in AMVUTTRA. Urist said the company sees a substantial untreated patient population in ATTR-CM, noting that about 80% of patients remain untreated. Chairman of Partnering and Investments Chris Hite said Royalty Pharma’s development-stage pipeline has expanded to 19 potential therapies, from three at the time of its June 2020 initial public offering. The company estimates peak potential royalties from its late-stage pipeline now total approximately $2 billion. The company cited expected or ongoing milestones across several programs, including: Results in 2026 from Novartis’ pelacarsen outcomes trial. Phase III data in 2026 for Biogen’s litifilimab in systemic lupus. Expected 2027 Phase III results for daraxonrasib in lung cancer and litifilimab in cutaneous lupus. Potential pivotal data in 2027 for Sanofi’s frexalimab in multiple sclerosis and Johnson & Johnson’s seltorexant in major depressive disorder. Hite said about 84% of the company’s approximately $22 billion in invested capital is tied to products that were approved at the time of investment or development-stage programs that subsequently received approval. Development-stage therapies account for 12% of invested capital, although about one-third of that capital is in programs that have already produced positive pivotal results. Royalty Pharma deployed $877 million on royalty deals in the first half, while Legorreta said announced royalty acquisitions totaled $1.7 billion year to date. The company returned approximately $367 million to shareholders during the first half, including around $100 million in share repurchases. At the end of June, Royalty Pharma had $812 million in cash and equivalents, $9.2 billion of investment-grade debt and an undrawn $1.8 billion revolving credit facility. Total debt-to-adjusted EBITDA was 2.8 times, or 2.6 times on a net basis. Coyne said the company is now rated BBB by all three major credit rating agencies following an S&P upgrade in June. Management also discussed its efforts to build a presence in China. Legorreta said the company is taking a patient approach but views the market as potentially large and attractive, particularly as Chinese biopharma companies seek Western partners for clinical development and commercialization. The company said it is monitoring proposed U.S. policy measures but believes existing out-licensing activity has already created a substantial royalty opportunity. Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines. The company's transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Royalty Pharma Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

For the quarter ended June 2026, Royalty Pharma (RPRX) reported revenue of $773 million, up 6.3% over the same period last year. EPS came in at $1.32, compared to $1.14 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $761.4 million, representing a surprise of +1.52%. The company delivered an EPS surprise of +3.94%, with the consensus EPS estimate being $1.27. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Royalty Pharma performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise: $194 million versus $196.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change. Portfolio Receipts- Royalty Receipts- Products- Imdelltra: $17 million versus $18.06 million estimated by two analysts on average. Portfolio Receipts- Royalty Receipts- Products- Imbruvica: $36 million versus $34.81 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -18.2% change. Portfolio Receipts- Royalty Receipts- Products- Xtandi: $44 million versus $43.92 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change. Portfolio Receipts- Royalty Receipts- Products- Promacta: $8 million versus $6.54 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -75.8% change. Portfolio Receipts- Royalty Receipts- Products- Tremfya: $57 million compared to the $63.28 million average estimate based on two analysts. The reported number represents a change of +54.1% year over year. Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq: $23 million compared to the $22.24 million average estimate based on two analysts. The reported number represents a change of +15% year over year. Portfolio Receipts- Royalty Receipts- Products- Evrysdi: $47 million versus the two-analyst average estimate of $48.36 million. The reported number represents a year-over-year change of +42.4%. Portfolio Receipts- Royalty Receipts- Products- Trodelvy: $14 million versus $12.09 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +40% change. Portfolio Receipts- Royalty Receipts- Products- Other products: $139 million versus $116.3 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +41.8% change. Portfolio Receipts- Royalty Receipts- Products- Royalty Receipts: $768 million compared to the $753.9 million average estimate based on two analysts. The reported number represents a change of +14.3% year over year. Portfolio Receipts- Royalty Receipts- Products- Trelegy: $58 million versus the two-analyst average estimate of $57.65 million. The reported number represents a year-over-year change of +1.8%. View all Key Company Metrics for Royalty Pharma here>>> Shares of Royalty Pharma have returned -0.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royalty Pharma PLC (RPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Analysts on Wall Street project that Royalty Pharma (RPRX) will announce quarterly earnings of $1.27 per share in its forthcoming report, representing an increase of 11.4% year over year. Revenues are projected to reach $761.4 million, increasing 4.7% from the same quarter last year. The consensus EPS estimate for the quarter has been revised 1.8% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. In light of this perspective, let's dive into the average estimates of certain Royalty Pharma metrics that are commonly tracked and forecasted by Wall Street analysts. Based on the collective assessment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Cystic fibrosis franchise' should arrive at $196.14 million. The estimate indicates a year-over-year change of +1.1%. The average prediction of analysts places 'Portfolio Receipts- Royalty Receipts- Products- Imbruvica' at $34.81 million. The estimate points to a change of -20.9% from the year-ago quarter. The consensus among analysts is that 'Portfolio Receipts- Royalty Receipts- Products- Xtandi' will reach $43.92 million. The estimate points to a change of +4.6% from the year-ago quarter. Analysts forecast 'Portfolio Receipts- Royalty Receipts- Products- Promacta' to reach $6.54 million. The estimate indicates a change of -80.2% from the prior-year quarter. Analysts expect 'Portfolio Receipts- Royalty Receipts- Products- Tremfya' to come in at $63.28 million. The estimate points to a change of +71% from the year-ago quarter. The collective assessment of analysts points to an estimated 'Portfolio Receipts- Royalty Receipts- Products- Cabometyx/Cometriq' of $22.24 million. The estimate suggests a change of +11.2% year over year. The combined assessment of analysts suggests that 'Portfolio Receipts- Royalty Receipts- Products- Evrysdi' will likely reach $48.36 million. The estimate indicates a change of +46.6% from the prior-year quarter. According to the collective judgment of analysts, 'Portfolio Receipts- Royalty Receipts- Products- Trodelvy' should come in at $12.09 million. The estimate indicates a change of +20.9% from the prior-year quarter. The consensus estimate for 'Portfolio Receipts- Royalty Receipts- Products- Other products' stands at $116.30 million. The estimate suggests a change of +18.7% year over year. Analysts' assessment points toward 'Portfolio Receipts- Royalty Receipts- Products- Royalty Receipts' reaching $753.90 million. The estimate suggests a change of +12.2% year over year. It is projected by analysts that the 'Portfolio Receipts- Royalty Receipts- Products- Trelegy' will reach $57.65 million. The estimate indicates a change of +1.1% from the prior-year quarter. Analysts predict that the 'Portfolio Receipts- Royalty Receipts- Products- Spinraza' will reach $11.32 million. The estimate suggests a change of -5.7% year over year. View all Key Company Metrics for Royalty Pharma here>>> Shares of Royalty Pharma have demonstrated returns of +0.4% over the past month compared to the Zacks S&P 500 composite's +1.7% change. With a Zacks Rank #3 (Hold), RPRX is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royalty Pharma PLC (RPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research